How does the foreclosure process work and how much money do you need to keep?

Quick overview

• A garnishment begins with the bailiff first informing the bank, which then blocks the money.
• The borrower often only learns of the blockage when he or she is unable to pay by card, withdraw cash or send a payment.
• The blocking applies to the money in the account, not automatically to all future income, but the bailiff may gradually affect other accounts or choose another method of enforcement.
• The most important thing is to find out right away who is conducting the foreclosure, what amount is being collected and whether it is an old, already paid or unauthorized debt.
• If the account receives wages, pension, maintenance or benefits, deal with the protected account as soon as possible.

We will be happy to help you check the validity of the levy and suggest a way forward.

How does a foreclosure on an account work?

Each execution is preceded by standard actions, where the court, on the proposal of the creditor (beneficiary), authorises a bailiff to carry out the execution. The bailiff then begins to seize the property and subsequently sends the debtor a notice of the commencement of the execution and a request for voluntary performance.

Similarly, the execution on an account is usually initiated by information to the bank first and only then is the debtor informed. This is for the simple reason that the debtor cannot access the account and withdraw the money himself before it is blocked.

As a rule, he will find that he is suddenly not allowed to withdraw cash, pay by card or send money from his account, or will only have access to part of his funds.

If the debtor has more than one account, the execution can be applied to all of them. If he or she is self-employed, the garnishment may apply to that account as well.

Execution is generally governed by the Enforcement Code, and the rules of the Code of Civil Procedure for attachment of a claim on an account with a financial institution also apply to the attachment of an account.

In practice, this means that the bailiff first issues an enforcement order against the bank and only subsequently does the debtor become aware of the blocking. Therefore, many people only find out about the foreclosure when they fail to make a card payment or ATM withdrawal.

We know from experience that the biggest problem is not the blocking of the account itself, but the fact that people do not find out for several days who is conducting the execution and what debt is actually being collected. Yet it is the first few days that decide whether it is possible to quickly request a withdrawal of part of the money, prepare a motion to stop the execution or start dealing with the protected account.

If there’s not enough money in the account..

If the execution is carried out for the amount of twenty thousand and the debtor’s account contains one hundred thousand, the situation is relatively easy. After the enforcement order becomes final, the amount is deducted from his account and sent to the bailiff. The execution may then be terminated. Such a step is always preceded, of course, by a call for voluntary payment of the debt within 30 days, which would seem to be the easiest option if the balance is sufficient.

If there are insufficient funds in the account, the funds will be blocked for a further six months. If a writ of execution is issued, the debtor loses virtually all disposition of the account. Therefore, he or she cannot use all or part of the funds already available in the account, including card payments, ATM withdrawals, entering payment orders and executing set standing orders and authorised direct debits.

Within this period, the bailiff may use other methods of enforcement, i.e. he may seize property and use its sale to pay the debt or request deductions from wages through the employer.

If the debtor does not dispute the substance of the execution, i.e. the amount owed or other circumstances, it is certainly worthwhile to cooperate and communicate with the bailiff. The longer the execution drags on, the more the debts (or the interest on them) increase.

The biggest mistake is to expect the account to “unblock itself” after a while. If the debt continues to accrue interest and costs, the foreclosure can extend to wages or other assets. Even if you don’t dispute the debt, it’s worth at least checking the amount being recovered and whether the costs of the foreclosure are being charged correctly.

What account dispositions are allowed?

During the execution period, you are entitled to a one-off withdrawal of three times the minimum subsistence level. In 2026, the subsistence minimum is CZK 4,860, so you are entitled to a one-off withdrawal of CZK 14,580. In order to withdraw this money, you must appear in person at a bank branch and submit a request. If everything is in order, the money will be paid out. This can only be arranged in one case, even if you have multiple blocked accounts.

The initiation of execution and its conduct against the debtor does not restrict the debtor from opening another account with another bank. However, they must take into account that it is very likely that this account will also be subject to execution. Another solution is to open a protected account, which is described below.

What about other accounts within the family?

The basic rule is that the bailiff may only seize an account held in the name of the debtor, in the sense that it is not enough for him to be the mere disposer of the account, but he must be the owner of the account.

Conversely, however, as regards the spouse’s account, execution may also be issued on the spouse’s account if it is a debt incurred during the marriage (the debt does not necessarily have to have been incurred by a legal act done jointly by the spouses, it is sufficient if the debtor himself or herself has undertaken the obligation).

However, both spouses must be informed of this step by letter. If the debt owed arose before the marriage, the execution may be stopped. An application for a stay of execution may also be made if the matrimonial property is legally dissolved or limited.

In practice, it is often the case that the debtor’s spouse considers the blocking of his or her account to be automatically unlawful. However, it is not that simple. It mainly depends on when the debt was incurred, whether it is part of the matrimonial property and whether the matrimonial property has been reduced or abolished. This is where a quick legal check pays off, because in some cases a motion to stop the execution can be filed against the other spouse’s property.

Have you set up an account for your child and are you sending them an allowance? Your offspring can rest easy and not worry about their savings. The bailiff cannot recover money from the child’s account because this money is the sole property of the child. The child’s account can theoretically be blocked by the bailiff if the debtor is the child.

Payment of the debt and lifting of the block

Once you have paid the debt being recovered, including any additional costs, the execution should be terminated. You do not need to do anything special to get the account back into operation, as the bailiff should act alone.

However, you can submit a motion to stop the execution directly to the bailiff and he is obliged to decide on it within 15 days. If you disagree with his decision, he can file an appeal. The debtor’s spouse can also file a motion to stop the execution if the execution is also against his/her property or against the property of the spouses in community of property.

Practical example: an account blocked because of an old debt

A client contacted us when her bank blocked her account due to a debt that was several years old. Her wages were being paid into the account and she was also paying rent and child support from the account. After checking the documents, it turned out that part of the debt had already been paid, but the bailiff was working with an outdated assessment. We helped the client prepare a submission to the bailiff, documented the payments made and also explained the procedure for setting up a protected account. So as you can see, it is important to address not only the blocking of the account itself, but also the accuracy of the amount being recovered.

Termination of execution in insolvency

If the situation is really unbearable, it can also be solved by declaring personal bankruptcy and applying for the commencement of insolvency proceedings (debt relief). This procedure also leads to the termination of the execution, since after the approval of the debt relief, the debtor’s property can no longer be executed.

Protected Account Institute

As of 2021, persons under execution can set up a so-called protected account, which they can use in a similar way to their existing account and the bailiff will not be able to access it. They can continue to make cashless payments and bank transactions. On the other hand, they cannot take out credit or use other similar services. However, it can only be used to manage so-called protected income.

From 2023, only one single protected account can be held. If the borrower is employed, the employer must designate the income as protected, otherwise the bank will not recognise the income and the account will not be protected.

No one other than approved payers of protected income can send money here, or such money would be rejected by the bank.

The list of protected income is long. They include wages, salary, remuneration from non-employment agreements, pension, maintenance, business debts, social assistance benefits and many others. However, it cannot be understood that the debtor will be left with, for example, a 50,000 salary. It is the amount of the so-called non-forfeitable minimum that determines how much of the wages will be left to the debtor and his family and how much will go to the creditors.

Summary

Account execution means that the bank, on the order of a bailiff, blocks the money in the debtor’s account up to the amount of the debt recovered and the costs of the execution. The debtor is then usually unable to pay by card, withdraw cash or send payments, but has the right to request a one-off withdrawal of a portion of the money equal to three times the individual’s subsistence level. If wages, pension, maintenance or benefits are coming into the account, it is advisable to deal with the protected account as soon as possible. A spouse’s account can also be affected if the debt is jointly owned, but a child’s account cannot usually be affected unless the child is the debtor. When in doubt about the amount of a debt, an old obligation, a blockage of the other spouse’s account or an unauthorised execution, it pays to quickly check the supporting documents and consider a motion to stop the execution.